• Hey Coach! There seems to be a big
focus on educational offerings—courses,
webcasts, You Tube videos, live events.
Are these available to all traders?
We have about 44 webcasts every week and
they’re accessible to anybody with a
TD Ameritrade account. Soon they’ll be
accessible to anybody everywhere, because
we are putting these webcasts on You Tube.
As we move to You Tube we’re going to have
two channels—one for active traders and an-
other for long-term investors. For the active
trader channel there’ll be topics from tech-
nical analysis to options, futures, and stock
trading. On the long-term channel, the topics
might include building a portfolio, managing
that portfolio, setting goals, ETFs, growth,
value, income investing, and so on.
The nice thing about the rollout to You-Tube is that it makes everything accessible
and shareable. If you learn something from
one of our videos, you can share it with others and encourage them to check out the
same video. We keep the content fresh and
current. Traders are also interested in the
news, economy, and earnings. We want to
bring that information to all traders.
But Coach, there are so many courses,
tutorials, and videos to choose from. How
do I know where to start?
It’s true there are plenty of courses for
stock traders and investors, option traders,
and self-directed portfolio managers. It can
all be a little hairy to navigate, so to stream-
line your efforts, we have what we call
personalized content recommendations.
So, if you log in to your TD Ameritrade ac-
count and go to the Education tab, and then
to the Overview page, you’ll see a bunch of
questions to help narrow down what you’re
trying to accomplish with your trading and
investing. As you start answering those
questions, the system will automatically
generate recommendations for the educa-
tional tools that could help you.
You can also access all this information
from the Education tab on the thinkorswim®
platform from TD Ameritrade. In addition to
our online offerings, we hold live workshops
around the country. The workshops are free
and geared toward education.
So, Coach! I have a specific question about
trading futures. Say I want to sell a strangle in a /ZB future in 64ths and need to
figure out the breakeven price in 32nds?
Bond (/ZB) and note (/ZN) futures prices
are quoted in 1/32 of a point, but their
options are quoted in 1/64 of a point. To
figure out the breakeven points of a strangle in bond futures options, you need to
look at the trade in 32nds in order to see
how far /ZB can move before the trade
starts to make or lose money. If you sell a
/ZB put and call each for 1" 40, that’s one
point and 40 64ths each, for a total credit
of two points and 80 64ths for the strangle.
You can turn 80 64ths into one point and
16 64ths (80 – 64) to see that the total
credit is three points and 16 64ths. Convert
the number of 64ths to 32nds by dividing
them by two, so 16 64ths is equal to eight
32nds. The total credit for the short strangle is three points and eight 32nds. To calculate the breakeven points at expiration,
subtract three and eight 32nds from the
put strike and add three and eight 32nds to
the call strike.
BIG IDEA: THE COACH TALKS TO US ABOUT
KNOWING THE HOW, WHEN, WHERE, AND WHY
OF THE MARKET. PLUS, YOU GET A NUGGET
ON TRADING OPTIONS ON FUTURES.